Correlation Between AG Mortgage and Brookfield DTLA
Can any of the company-specific risk be diversified away by investing in both AG Mortgage and Brookfield DTLA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AG Mortgage and Brookfield DTLA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AG Mortgage Investment and Brookfield DTLA, you can compare the effects of market volatilities on AG Mortgage and Brookfield DTLA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AG Mortgage with a short position of Brookfield DTLA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Mortgage and Brookfield DTLA.
Diversification Opportunities for AG Mortgage and Brookfield DTLA
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MITT-PA and Brookfield is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding AG Mortgage Investment and Brookfield DTLA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield DTLA and AG Mortgage is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AG Mortgage Investment are associated (or correlated) with Brookfield DTLA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield DTLA has no effect on the direction of AG Mortgage i.e., AG Mortgage and Brookfield DTLA go up and down completely randomly.
Pair Corralation between AG Mortgage and Brookfield DTLA
If you would invest 26.00 in Brookfield DTLA on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Brookfield DTLA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
AG Mortgage Investment vs. Brookfield DTLA
Performance |
| Timeline |
| AG Mortgage Investment |
| Brookfield DTLA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AG Mortgage and Brookfield DTLA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Mortgage and Brookfield DTLA
The main advantage of trading using opposite AG Mortgage and Brookfield DTLA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Mortgage position performs unexpectedly, Brookfield DTLA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brookfield DTLA will offset losses from the drop in Brookfield DTLA's long position.| AG Mortgage vs. New York Mortgage | AG Mortgage vs. New York Mortgage | AG Mortgage vs. Two Harbors Investment | AG Mortgage vs. Two Harbors Investment |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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